1. is correct
The original (rather unusual and poetic) structure you give is:
adjective/adverb + auxillery + clause
Rarely do we find such courage on the battlefield.
Seldom had I met such kind people.
Little do you know what he really thinks.
Often were the days I wished I had stayed at home.
They can be rewritten as normal Subject +adverb of frequency + verb
We rarely find....
I seldom met
You (really) don't know...
I often wished...
As you can see "little" cannot be transfered. I hope this helps! Email me if you're still not clear, I may not have explained that very well - I haven't had a coffee yet.